ENHANCING EMPLOYEE MOTIVATION IN OFFICE OF VIETNAM DATA

COMMUNICATION COMPANY (VDC)

Supervisor: PhD. Dao Thi Thanh LamStudent: Le Thu hanh

Class: EMBA- 6A

I. INTRODUCTION1. Rationale

- Motivation is one of the most important factors influences employee performance

- The employee motivation in VDC is not good that lead to the high turn-over rate, dissatisfied and low committed employees.

High turn- over rate

In 2008, the turn over rate of VDC is approximate: 25% in compare with 13 % of FPT and under 10 % of safe turn- over rate.

0%

5%

10%

15%

20%

25%

VDC Office FPT Save T-O-R

Low commitment of employee

- With some employee, the reasons they still be work in VDC are

+ Stable labor contract

+ Stable job

- Employees only work as their responsibility without interest and motivated

Employee complained about treated unfair

Promotion opportunity

Responsibility

Reward

Appraisal performance

Salary

UnfairUnfair

2. research objectives

Finding out the reasons of de-motivation and motivation in VDC office

Making recommendations to enhance employee motivation in order to attract, maintain, develop good employees

Analyzing the current motivation practices at VDC

Head Office.

3. research questions

What are the de-motivators and motivators in VDC office?

What are effective ways that VDC can implement to enhance employee motivation?

How are the VDC Head Office motivation practices?

4. scope of work

VDC Office

Employee at Staff level

5. research methodology

1. Data collection

Primary Data

Data collection

In-depth interview

Secondary data

Survey Reports and documents

Primary data

Respondent/ interviewee

Data collecting methods

Number of respondent Instruments Type of

information

Some Department managers

In-depth interview

5 Interview guideline

The policy of VDC office for employee motivation

Employee in every

Departments

Quantitative method (survey)

84 Questionnaire Employee’s assessment about

the VDC employee motivation in

practice

Survey method

- Sample size: 84 employees

- The sample method: Using quasi-random sampling with stratified sampling method.

- Questionnaire format: Including Multi choice question, yes/no question and open questions.

II. THEORICAL FRAMEWORK

1. The Two factor theory of Heizberg

Typical Hygiene Factors

Working conditionsSupervisionSalaryCompany policies and

administration Interpersonal relations

Typical Motivation Factors

AchievementRecognition Responsibility Interesting

job/challenging workAdvancement

IV. THEORICAL FRAMEWORK

2. Maslow’s hierarchy of needs

Esteem needsachievement, status, responsibility, reputation

Self-actualization personal growth and fulfillment

Belongingness and Love needsfamily, affection, relationships, work group, etc.

Safety needs protection, security, order, law, limits, stability, etc.

Biological and Physiological needsbasic life needs - air, food, drink, shelter, warmth, sex, sleep, etc.

IV. THEORICAL FRAMEWORK

3. The Equity theory of J. Stacy

Equity theory

Perceived ratio comparison Employee’s assessment

Outcomes AInputs A < Outcomes B

Inputs B Inequity (Under- Reward)

Outcomes AInputs A = Outcomes B

Inputs B Equity

Outcomes AInputs A > Outcomes B

Inputs B Inequity (Over- Reward)

*Person A is the employee, and person B is a relevant other or referent

The relevant of three theories in the case of VDC

- Maslow: Focus on Individuals need

- Herzberg: Focus on the work itself and Company environment

- J. Stacy: Focus on equity/ fairness

1. Main services and products

The call and fax 171 (VOIP, FOIP)

VNN Internet & other service base on IP

Data communication service

Web server and E- commerce

Design, import, export software

III. OREVIEW ABOUT VDC

2. The VDC’s human structure

14

48

129

195

0

50

100

150

200

>50 41-50 31-40 <=30

2. The VDC’s human structure

85%

1% 2% 6% 6%

Master degreeBachelor degreeIntermediateJuniorPrimary

46%

54%

MaleFemale

IV. Research results

1. VDC employee opinion on motivationHygiene factors

3.78

3.253

3.28

4.25

4.86

4.224 3.89 4

3.80

4.56

4.17

3.714

2.57

3.42 3.31

3.83

4.08

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

5.00

1-3 years experience 3-6 years experience 6-9 years experience Total

1.1. Working condition 1.2. Salary1.3. Supervision-techinical 1.4. Policy1.5. Relationship

1. VDC employee opinion on motivation

Motivation factors

4 3.923.57

3.774.11

4.42 4.434.22

3.67 3.83 3.86 3.73.67

4.253.86 3.873.89

3.53.14

3.453.78

4.17 4.293.98

3.674

4.293.87

0

1

2

3

4

5

1-3 years experience 3-6 years experience 6-9 years experience Total2.1. Achivement 2.2. Recorgnition 2.3. Responsibility2.4. Work itselft 2.5. Customer relationship 2.6. Advancement2.7. Professional growth

2. Employee satisfaction

2.89

0.367

3.25

0.395

3.00

0.335

3.07

0.393

0.00

1.00

2.00

3.00

4.00

5.00

1-3 yearsseniority

3-6 yearsseniority

>6 yearsseniority

Wholesample

Standard DeviationAverage satisfy score

3. Analyze the Hygiene factors on employee motivation

3. 1. Working condition

3.36 3.32 3.39 3.112.82

3.93

1.00

2.00

3.00

4.00

5.00

4.1. General 4.2. Stationary 4.3. Officeequipment

4.4. Businesstransportation

4.5. Workingroom

4.6. Socialsecurity

Thanks for your listening!